HRA Tax Exemption.
Under the Old Tax Regime, employees living in rented accommodation can claim tax exemption on HRA under Section 10(13A) and Rule 2A. This calculator computes the exact exempt amount and the taxable remainder.
HRA Tax Exemption Inputs & Instant Projection
How HRA Tax Exemption is Calculated.
Authority Reference: Income Tax Act 1961, Section 10(13A) read with Rule 2A
Key Regulatory Provisions
The calculations in this engine strictly conform to the official recommendations of the 7th Central Pay Commission and subsequent Department of Expenditure (DoE) & Department of Personnel and Training (DoPT) office memorandums.
When economic thresholds such as the 50% Dearness Allowance benchmark are reached, all dependent statutory components (such as HRA, Children Education Allowance, Gratuity ceilings, and Special Duty Allowances) are systematically re-indexed.
Audit & Verification Checklist
Before submitting claims to your Drawing and Disbursing Officer (DDO) or Pay and Accounts Office (PAO), ensure that:
- Your current basic pay matches the exact stage recorded in your physical Service Book.
- Your posting city classification (X, Y, or Z) reflects the latest Census population notifications.
- Tax exemptions under Section 10 are claimed only under the Old Tax Regime where applicable.
Common Questions About HRA Tax Exemption.
1. Is HRA exemption available under the New Tax Regime?
No. HRA exemption under Section 10(13A) is only available under the Old Tax Regime. The New Tax Regime does not allow HRA deductions.
2. How is HRA tax exemption calculated under Section 10(13A)?
HRA exemption is the least of three amounts: (1) Actual HRA received, (2) Rent paid minus 10% of salary (Basic + DA), or (3) 50% of salary for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metro cities.
3. Can I claim both HRA exemption and home loan tax deductions?
Yes, if you own a home financed with a home loan in one city and reside in a rented property in another location due to official duty requirements, you can legally claim both HRA under Section 10(13A) and home loan interest under Section 24(b).